CEDAR RAPIDS - Some potentially painful decisions could be coming soon for a one-time nationally-recognized affordable housing project in Cedar Rapids.

The Osada Apartments generated a lot of attention in the late 1990's. A non profit housing group rehabilitated an old warehouse and turned it into affordable urban apartments for low income families. Then Vice President Al Gore came to Cedar Rapids to dedicate the project in early 1998.

But in recent years, Osada ran into lots of trouble. Tenants constantly complained about trash, damage to parts of the building and a lack of maintenance. The collapse of the non-profit Mid-American Housing Partnership, or MAHP, last year left the Osada complex in limbo.

Only about half of the 67 units in the old warehouse are currently occupied. Building managers haven't allowed new tenants to move in for months because of the unsettled situation.

Those familiar with the situation say there are several possible outcomes to the problems at Osada. One solution may be to shut the building down and find new affordable housing for existing tenants. Another potential solution could be finding a new agency willing to take over operations and invest enough money to turn the situation around.

One additional possibility could be converting to owner-occupied units with sale prices geared for low income families. Some have described that as a "Habitat for Humanity-like" condo project.

The non-profit group Four Oaks took over management of a number of MAHP properties, including Osada. CEO Jim Ernst would not speculate on what might happen. But he expects a decision in two to three weeks.

Another potential complication to any solution is the tax credit situation. Building owners, in this case Alliant Energy Investments, can write off some corporate taxes due to ownership of an affordable housing project. Closing down or even selling the complex for another purpose would mean losing those tax credits, or even repaying the government for past credits.